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Perfect Competition

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Why are businesses that operate in a perfectly competitive market considered "price takers"?

© BrainMass Inc. brainmass.com September 20, 2018, 7:05 pm ad1c9bdddf - https://brainmass.com/economics/perfect-competition/perfect-competition-356011

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A perfectly competitive market is characterized by large number of sellers who sell homogeneous products i.e products cannot be differentiated. Size of each firm is very small as compared to market size. Thus ...

Solution Summary

Solution discusses why businesses operating in perfectly competitive market are price takers.

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